Applied Materials (NASDAQ:AMAT) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS Group has raised its price target for Applied Materials from $175.00 to $185.00, indicating a potential upside of 1.61% from the current price.
• Applied Materials recently reported earnings of $2.39 per share, surpassing expectations, with a revenue of $7.10 billion for the quarter, showing a year-over-year increase of 6.8%.
• Institutional investors hold a significant majority, owning 80.56% of Applied Materials' stock, with notable recent increases in stakes from several firms.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price target hoisted by research analysts at UBS Group from $175.00 to $185.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has a "neutral" rating on the manufacturing equipment provider's stock. UBS Group's target price would indicate a potential upside of 1.61% from the stock's current price.

A number of other research firms also recently weighed in on AMAT. TD Cowen decreased their price objective on Applied Materials from $225.00 to $220.00 and set a "buy" rating for the company in a report on Friday, May 16th. The Goldman Sachs Group initiated coverage on Applied Materials in a report on Thursday, July 10th. They issued a "buy" rating and a $225.00 price objective for the company. Mizuho increased their price objective on Applied Materials from $195.00 to $220.00 and gave the company an "outperform" rating in a report on Monday, July 14th. Rothschild & Co Redburn downgraded Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 price objective for the company. in a report on Monday, July 7th. Finally, Redburn Atlantic downgraded Applied Materials from a "strong-buy" rating to a "hold" rating and decreased their price objective for the company from $225.00 to $200.00 in a report on Monday, July 7th. Nine equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $204.09.

Applied Materials Stock Up 1.2%

Shares of AMAT stock opened at $182.07 on Monday. Applied Materials has a 52-week low of $123.74 and a 52-week high of $215.70. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.76 and a current ratio of 2.46. The stock has a market cap of $146.11 billion, a price-to-earnings ratio of 22.13, a PEG ratio of 2.00 and a beta of 1.70. The firm's 50-day moving average is $179.91 and its 200-day moving average is $166.77.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.31 by $0.08. Applied Materials had a return on equity of 40.15% and a net margin of 24.06%. The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.12 billion. During the same period in the previous year, the company posted $2.09 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. Sell-side analysts predict that Applied Materials will post 9.38 EPS for the current year.

Insiders Place Their Bets

In other Applied Materials news, CAO Adam Sanders sold 562 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total transaction of $100,373.20. Following the completion of the transaction, the chief accounting officer owned 5,300 shares of the company's stock, valued at $946,580. This trade represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AMAT. Runnymede Capital Advisors Inc. lifted its stake in Applied Materials by 972.2% in the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after acquiring an additional 175 shares during the last quarter. Smallwood Wealth Investment Management LLC acquired a new stake in Applied Materials during the first quarter worth approximately $29,000. Maseco LLP acquired a new position in shares of Applied Materials in the 2nd quarter valued at $30,000. Clal Insurance Enterprises Holdings Ltd grew its position in Applied Materials by 435.0% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after buying an additional 174 shares during the last quarter. Finally, Activest Wealth Management grew its position in Applied Materials by 5,325.0% in the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock valued at $31,000 after buying an additional 213 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.

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